Those who owe a tax debt to the IRS will typically also have a state tax debt. There are many ways to gain a tax debt with a state; however, the most common way it occurs is when an individual works and lives in separate states. Filing your tax returns with an inexperienced accountant or online tax software that does not understand or have the knowledge of each state’s tax laws can also cause you to gain a tax liability.
State tax issues are similar to yet entirely different from IRS tax issues. States have the same capabilities the IRS has to collect, and each state has different laws and severity levels to how they handle a tax debt. In addition to having the capability to impose wage garnishments, bank levies, and tax liens, states also have the ability to revoke or suspend licenses; such as drivers licenses, hunting licenses, and professional licenses needed for employment.
Because each state is different, it’s important to hire a licensed tax professional to assist you in navigating state law to help you resolve your tax issue. At Justice Tax, LLC, we have decades of experience in negotiating with all 50 states and territories to help resolve our client’s tax concerns. Give us a call at 888-545-6007 for a free, no obligation consultation with one of our Senior Tax Consultants to discuss your unique tax situation and provide a course of action to take for your resolution.